European Central Bank committee member Villeroy: It is still possible that the central bank may cut interest rates in the next six months.

Francois Villeroy de Galhau, member of the European Central Bank's governing council, said in an interview with the Financial Times that the ECB may still cut interest rates in the next six months. The French central bank governor reiterated his views from last week, saying, "If we look at current market assessments, inflation expectations remain modest. If this situation is confirmed, we may further ease policy in the next six months." Villeroy also stated that the "significant appreciation" of the euro this year has to some extent offset the recent increase in oil prices; "Now we have returned to normal"; "The neutral rate and the terminal rate are essentially different. They can be the same, but are not equivalent"; The situation in the Middle East is a "significant new uncertainty factor" that "could have bi-directional impacts"; The ECB will "closely monitor changes in future oil prices," but "relying solely on oil prices themselves" is not enough for us to base our policy responses on; "If we observe that core inflation is affected by spillover effects, or if inflation expectations deviate, then we may adjust monetary policy"; If trade tensions with the United States escalate further, "it will have a negative impact on our economic growth, but is unlikely to bring inflation pressure."